Defense Threat Reduction Agency awards $49.7M contract for unspecified services, raising value-for-money questions
Contract Overview
Contract Amount: $49,681,620 ($49.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 1999-01-04
End Date: 1999-12-14
Contract Duration: 344 days
Daily Burn Rate: $144.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 199905!9700!0209!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0025 !A!*!* !19990104!19990930!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !0001!+000005000000!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!1!*!*!*!B!N!A!D !N!U!1!001!N!2A!Z!N!Z!* !* !N!C!*!B!B!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $49.7 million to LEIDOS, INC. for work described as: 199905!9700!0209!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0025 !A!*!* !19990104!19990930!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!03000!013!51!ARLINGTON !ARLING… Key points: 1. Contract value of $49.7 million for services raises concerns about cost-effectiveness given the lack of detailed service description. 2. Awarded as a definitive contract, the specific nature of the services provided is not discernible, hindering performance assessment. 3. The contract was not competed, suggesting potential limitations in achieving the best possible pricing and value for taxpayers. 4. Contract duration of 344 days indicates a short-term need, but the lack of competition may have inflated costs. 5. The contractor, Leidos, Inc., is a large entity, and the contract's size warrants scrutiny regarding its necessity and efficiency. 6. Geographic location of the contractor in California does not immediately suggest specific public benefits or workforce implications.
Value Assessment
Rating: questionable
The contract value of $49.7 million is substantial, but without a clear definition of the services rendered, it is difficult to benchmark against similar contracts or assess value for money. The 'NOT DISCERNABLE OR CLASSIFIED' service description prevents any meaningful comparison of pricing or performance. This lack of transparency makes it impossible to determine if the cost was reasonable or if alternative, more cost-effective solutions were considered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source or limited competition scenario. The lack of a competitive bidding process means that the government did not explore multiple vendor options, which typically drives down prices and encourages innovation. This approach limits the government's ability to ensure it is receiving the best possible value and may lead to higher costs than if the contract had been openly competed.
Taxpayer Impact: When a contract is not competed, taxpayers may be paying a premium. Without the pressure of competition, the awarded price might be higher than what could have been achieved through a bidding process, leading to a less efficient use of public funds.
Public Impact
The primary beneficiary appears to be the contractor, Leidos, Inc., which received a significant financial award. The specific services delivered are not detailed, making it impossible to identify direct public services or benefits. The contract's geographic impact is limited to the contractor's location in San Diego, California, and the agency's location in Arlington, Virginia. Workforce implications are confined to the employment opportunities created by Leidos, Inc. for the contract's duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of service definition hinders performance and value assessment.
- Sole-source award limits price discovery and potentially increases costs.
- Absence of competition raises concerns about efficiency and taxpayer value.
- Contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not managed tightly.
Positive Signals
- Contract awarded to a known entity (Leidos, Inc.) which may have relevant expertise.
- Contract was awarded, indicating a recognized need by the Defense Threat Reduction Agency.
Sector Analysis
This contract falls under the 'Other Education & Training Services' category, with a PSC code of 52302. The defense sector, particularly agencies like the Defense Threat Reduction Agency (DTRA), often procures specialized services to support their missions. While the exact nature of these services is unclear, they likely relate to training, education, or technical support critical for defense operations. Comparable spending in this niche sector can vary widely depending on the specific requirements, but large contracts like this suggest a significant investment in specialized capabilities.
Small Business Impact
There is no indication that this contract included a small business set-aside. As a large definitive contract awarded to Leidos, Inc., it is unlikely to have directly benefited small businesses through prime award. Subcontracting opportunities for small businesses are not specified, leaving their potential involvement unknown. The impact on the small business ecosystem is therefore minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight mechanisms for this contract are not detailed in the provided data. As a definitive contract awarded by the Department of Defense, it would typically fall under the purview of the agency's contracting officer and potentially the Inspector General. However, the lack of transparency regarding the services rendered makes assessing the effectiveness of oversight challenging. Accountability measures would depend on the specific performance metrics and reporting requirements, which are not discernible from the available information.
Related Government Programs
- Defense Threat Reduction Agency Operations
- Department of Defense Training and Education Services
- Federal Science and Technology Support Contracts
- Cost-Plus-Fixed-Fee Service Contracts
Risk Flags
- Lack of Service Definition
- Sole-Source Award
- Potential for Undisclosed Costs
- Limited Transparency
Tags
defense, department-of-defense, defense-threat-reduction-agency, definitive-contract, cost-plus-fixed-fee, not-competed, sole-source, services, california, large-contract, training-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.7 million to LEIDOS, INC.. 199905!9700!0209!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0025 !A!*!* !19990104!19990930!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !0001!+000005000000!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8742!1!*!*!*!B!N!A!D !N!U!1!0
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $49.7 million.
What is the period of performance?
Start: 1999-01-04. End: 1999-12-14.
What specific services were provided under contract DTRA0199C0025?
The provided data indicates the service category as 'OTHER EDUCATION & TRAINING SERVICES' (NAICS 611430) and the Product Service Code (PSC) as 52302. However, the specific nature of these services is explicitly marked as 'NOT DISCERNABLE OR CLASSIFIED'. This lack of detail prevents a clear understanding of what the $49.7 million funded. It could range from specialized technical training for personnel, educational program development, or other forms of support critical to the Defense Threat Reduction Agency's mission. Without further clarification, the exact deliverables and their impact remain unknown.
How does the $49.7 million contract value compare to similar services procured by DTRA or the DoD?
Benchmarking this $49.7 million contract is challenging due to the unspecified nature of the services. DTRA and the broader DoD procure a vast array of services, from IT support and research to logistics and specialized training. If these services were indeed for education and training, $49.7 million represents a significant investment. However, without knowing the scope, duration, and specific requirements, a direct comparison to other contracts is speculative. Contracts for large-scale, complex training programs or highly specialized technical support could reach or exceed this value. Conversely, simpler training modules or standard educational services would likely cost considerably less. The lack of competition further complicates value assessment.
What are the primary risks associated with a 'NOT COMPETED' definitive contract of this magnitude?
The primary risks associated with a 'NOT COMPETED' definitive contract of $49.7 million are significant. Firstly, the lack of competition means the government likely did not secure the most favorable pricing, potentially leading to overspending. Secondly, without a competitive process, there's a reduced incentive for the contractor to innovate or provide exceptional value, as alternatives were not explored. Thirdly, the 'NOT DISCERNABLE OR CLASSIFIED' service description introduces a risk of scope creep or misalignment between the agency's needs and the delivered services. Finally, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost overruns if not meticulously managed and overseen, especially when the scope is unclear.
What is the track record of Leidos, Inc. in fulfilling similar government contracts?
Leidos, Inc. is a major government contractor with a substantial history of performing work across various federal agencies, including the Department of Defense. They have a broad portfolio encompassing IT services, logistics, engineering, and scientific research. While specific details of their performance on this particular DTRA contract are obscured by the lack of service definition, Leidos generally has a significant presence and experience in the federal contracting space. Their track record typically involves large, complex projects. However, the quality and value of their past performance can vary, and a comprehensive assessment would require reviewing specific past performance evaluations and contract histories beyond the scope of this data.
What does the contract type 'Cost Plus Fixed Fee' imply for this contract?
A Cost Plus Fixed Fee (CPFF) contract type means the contractor (Leidos, Inc.) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work cannot be precisely defined at the outset, allowing for flexibility. However, it places a significant burden on the government to closely monitor and audit the contractor's costs to ensure they are reasonable and allocable to the contract. The 'fixed fee' component provides some incentive for the contractor to control costs, as their profit is not directly tied to the total cost incurred. Given the lack of service clarity, the CPFF structure here necessitates robust government oversight to prevent potential cost overruns and ensure value.
What historical spending patterns exist for 'Other Education & Training Services' within DTRA?
Analyzing historical spending patterns for 'Other Education & Training Services' within DTRA requires access to historical contract databases and budget allocations. Without such data, it's difficult to provide specific trends. However, agencies like DTRA, focused on threat reduction, often require specialized training for personnel dealing with complex WMD, CBRN, or emerging threats. Spending in this area can fluctuate based on geopolitical events, technological advancements, and evolving mission requirements. Large, one-off contracts like this $49.7 million award might represent a specific initiative or a gap-filling measure, rather than a consistent, predictable spending level. A deeper dive into DTRA's budget justifications and contract awards over several fiscal years would be necessary to identify meaningful patterns.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-01-04
Current End Date: 1999-12-14
Potential End Date: 1999-12-14 00:00:00
Last Modified: 2024-02-23
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